Markets falter after Trump’s primetime pitch on Iran

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Trump's address to nation about Iran war

Trump's address to nation about Iran war

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▪  Trump defends Iran operation

▪ GOP backs DHS funding plan  

▪ NATO withdrawal floated 

▪ Surgeon general confirmation stalled 

President Trump took his case on the Iran war directly to the American people from the White House for the first time since the U.S. offensive started, promising a swift end to a conflict now in its fifth week.  

“We’re going to finish it very fast. We’re getting very close,” Trump said.  

Markets were not convinced. Futures tied to the major U.S. stock indexes fell by 1 percent or more, while oil prices jumped around 7 percent overnight.  

Trump once again called on Europe to take the lead in reopening the Strait of Hormuz, which he said would “open naturally” when the war ended.  

He also threatened to bomb Iran “back to the stone ages” if it refused to strike a deal in the coming weeks, promising to strike electricity infrastructure, a possible violation of international law.  

Trump’s address was largely notable for what he didn’t say. The president did not mention potential plans to put boots on the ground or lay out U.S. demands for a ceasefire. 

“We have no additional certainty ⁠or clarity around timeline from this address and this is what the market was looking for,” Jon Withaar, senior portfolio manager at Pictet Asset Management in Singapore, told Reuters.  

“The fact that we can expect 2-3 more weeks of action, boots on the ground were not ruled out and that threats to hit infrastructure were reiterated will put the market back on the defensive, particularly as we come into the long weekend.”  

Trump had earlier Wednesday claimed that Iran asked the U.S. for a ceasefire, saying he would consider it once the Strait of Hormuz is “open, free, and clear.” 

“Iran’s New Regime President, much less Radicalized and far more intelligent than his predecessors, has just asked the United States of America for a CEASEFIRE!” he said in a post on Truth Social, not clarifying who the leader was. 

Iran denied that it requested a ceasefire, as Iranian Foreign Ministry spokesperson Esmail Baghaei called Trump’s statement “false and baseless.” 

Iranian Foreign Minister Abbas Araghchi did confirm Tehran has had direct contact with the U.S. He told Al Jazeera he has received messages from U.S. special envoy Steve Witkoff, but the “trust level is at zero.” 

Trump has been under rising pressure to bring an end to the conflict as oil prices have soared, boosting the average national cost of gas to more than $4 per gallon for the first time since 2022. He’s also faced declining poll numbers as more Americans say they disapprove of his handling of the Iran situation and of his presidency in general. 

The Hill’s Sarah Fortinsky reports Trump’s approval numbers have slipped even with his own MAGA base and 2024 supporters, who are growing wary of a prolonged war that could further inflict turmoil on the economy. 

Trump in his primetime address laid out a rosy picture of how the economy will rebound once the war in Iran comes to an end.  

“It will resume the flowing, and the gas prices will rapidly come back down. Stock prices will rapidly go back up,” he said.  

The war showed no signs of letting up early Thursday, as Israel said it intercepted missiles fired from Iran. The Gulf countries of the United Arab Emirates and Saudi Arabia also said they responded to missile and drone strikes. 

But Trump emphasized that this conflict shouldn’t be compared to past quagmires the U.S. has engaged in historically, such as the wars in Vietnam and Afghanistan. 

“Tonight, every American can look forward to a day when we are finally free from the wickedness of Iranian aggression and the specter of nuclear blackmail,” Trump said. “Because of the actions we have taken, we are on the cusp of ending Iran’s sinister threat to America and the world. And I’ll tell you, the world is watching.” 

▪ The Hill: Five takeaways from President Trump’s address on Iran 

▪ The Atlantic: Maybe Trump Should Not Have Given This Speech

▪ CNBC: Trump’s Iran speech ignores the risks of a return to the 1970s: Analysis

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Trump has discussed ousting Attorney General Pam Bondi and replacing her with Environmental Protection Agency Administrator Lee Zeldin, multiple outlets reported. It comes as the president has apparently grown frustrated with Bondi’s leadership of the Department of Justice and handling of the Epstein........

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